The Pakistani government has escalated challenges for citizens facing rising inflation by imposing taxes on essential items, potentially increasing flour prices in Pakistan.
Sources indicate that the budget’s imposition of taxes on essential goods will increase the price of flour, a staple for many low-income households. The withholding tax is expected to push the cost of flour up by 5 to 7 rupees per kilogram.
The Flour Mills Association of Pakistan has scheduled an emergency meeting this Saturday in Lahore to address the issue.
Flour mill operators are urging the government to reconsider and remove the withholding tax on wheat products. They have clearly stated that if the government does not retract the tax, it could lead to the shutdown of flour mills and potentially trigger a nationwide strike, resulting in extensive protests.
Chaudhry Amir Abdullah, Chairman of the Flour Mills Association of Pakistan, explained to the media that the new withholding tax on wheat products would increase the price of milled and fine flour by 5 to 7 rupees per kilogram. He projected that the price of a 10-kilogram bag of flour might increase by as much as 106 rupees.
Abdullah also pointed out that only 2 per cent of Pakistani citizens currently pay taxes, while the economically vulnerable bear the brunt of 98 per cent of the sales and other taxes. He noted significant potential price hikes on essential goods due to the withholding tax affecting sellers, retailers, and wholesalers, which could exacerbate public hardship.
He emphasized that flour mills cannot collect withholding taxes because they are not affiliates of the Federal Board of Revenue (FBR) or any governmental body.
